Relating to school districts, including by modifying provisions related to the district management levy, waiving certain specified duties, responsibilities, and requirements for the school year beginning July 1, 2023, and ending June 30, 2024, and including effective date provisions

Sponsored by the House Appropriations Committee

Topics:K–12 education Taxes

Same legislation: HSB 728

Write your legislators about itWhat changed before it passed

Official bill page Lobbyist declarations One-pager to print

Where it is now

Done: IntroducedFebruary 28, 2024
Done: SubcommitteeFebruary 28, 2024
Done: House committeeMarch 6, 2024
Done: Passes the HouseMarch 12, 202494–1
Done: Senate committeeMarch 21, 2024
Done: Passes the SenateApril 2, 202449–0
Done: To the GovernorApril 5, 2024
Done: Signed into lawApril 5, 2024

Signed into law What’s a funnel?

What’s in it

AI summary School districts in specific counties that were declared under a disaster emergency can use certain tax money to pay employee retention bonuses. These districts are also excused from following some state rules regarding assessments, attendance, and graduation requirements for the 2023-2024 school year. The law limits bonus spending to $700,000 per district and does not allow them to raise taxes to pay for them.¹

Read the official explanation

This bill relates to school districts, including by modifying provisions related to the district management levy and waiving certain specified duties, responsibilities, and requirements for the school year beginning July 1, 2023, and ending June 30, 2024. The bill authorizes school districts to use the revenue from the district management levy to pay the costs of retention bonus payment to employees for the school year beginning July 1, 2024, if the school district is the subject of a proclamation of disaster emergency issued by the governor on January 8, 2024, and the school district is located in a county with a population of greater than 99,500 but less than 100,000, a county with a population of greater than 26,000 but less than 27,000, and a county with a population of greater than 8,760 but less than 8,800. The bill provides that a school district shall not expend more than $700,000 under this provision and shall not increase the amount of the district management levy in order to make the retention bonus payments. The bill establishes that this provision is repealed July 1, 2025. The bill provides that for the school year beginning July 1, 2023, and ending June 30, 2024, for a school district that is the subject of a proclamation of disaster emergency issued by the governor on January 8, 2024, and that is located in a county with a population of greater than 99,500 but less than 100,000, a county with a population of greater than 26,000 but less than 27,000, and a county with a population of greater than 8,760 but less than 8,800, certain specified duties, responsibilities, and requirements shall be deemed not to apply, including duties, responsibilities, and requirements related to assessments, days or hours of attendance, and graduation requirements. The bill provides that these provisions shall not be construed to waive any duty, responsibility, or requirement established under federal law. The bill requires the director of the department of education to work with the United States department of education and attempt to obtain appropriate waivers of duties, responsibilities, and requirements established under federal law for such a school district. The bill takes effect upon enactment.

Why it matters. School districts located in specific counties that were subject to a governor's disaster emergency proclamation can use up to $700,000 from their district management levy to pay employee retention bonuses for the 2024-2025 school year. These same districts would also have certain state requirements waived regarding assessments, attendance, and graduation for the 2023-2024 school year. The State Board of Education and the State Department of Education are tasked with attempting to obtain similar waivers for federal requirements.²

Full bill text · What changed before it passed³

Senate subcommittee

Named March 18, 2024. On March 20, 2024 it recommended passage. [].

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Fiscal note

Cost: up to $700,000 Compare with other bills

AI summary This bill allows certain school districts to use up to $700,000 from their management levy to pay for employee retention bonuses for the school year beginning July 1, 2024. It also requires the State Board of Education and the State Department of Education to waive certain educational duties for these districts for the 2023-2024 school year. The fiscal impact of this bill is unknown.⁴

Read the fiscal note

Description

House File 2653 authorizes specific school districts to use revenue from the district management levy to pay the costs of retention bonus payments to employees for the school year beginning July 1, 2024. Eligible school districts are required to have been the subject of a Proclamation of Disaster Emergency issued by the Governor on January 8, 2024. Under this provision, affected school districts are permitted to spend up to $700,000 and are prohibited from raising the amount of the district management levy to make retention payments. This provision is repealed July 1, 2025. The Bill requires the State Board of Education and the State Department of Education to waive specified educational duties, responsibilities, and requirements for the specified school districts for the 2023-2024 school year. The Bill takes effect upon enactment.

Background

On January 8, 2024, the Governor issued a Proclamation of Disaster Emergency for the Perry Community School District (CSD) in Dallas County. Under Iowa Code section 29C.6, a Proclamation of Disaster Emergency authorizes the use and deployment of all available State resources, supplies, equipment, and materials as are reasonably necessary to assist those citizens in the county or counties affected. Iowa Code chapter 29C describes the powers and requirements associated with emergency management and security.

A school district may annually certify a tax on all taxable property of the school district for the management levy. There are no levy rate restrictions. The district’s board of directors is empowered to create a district management levy through Iowa Code section 298.4 to be used to pay for the following purposes:

Unemployment benefits.
Payments of liability insurance premiums.
Costs of judgments or settlements related to tort liability.
Insurance agreements.
Early retirement benefits.
Mediation and arbitration, including but not limited to legal fees associated with such acts. The FY 2024 management levy for the Perry CSD is 2.19767 per $1,000 in assessed property value. Based on preliminary FY 2023 information from the Iowa Association of School Boards (IASB), Perry CSD had $882,000 in the district’s management levy fund.

Assumption

Expenses that may be made from the district management levy for retention bonuses are unknown.

Fiscal Impact

House File 2653 permits the spending of up to $700,000 from a school district’s management levy to pay for employee retention bonuses. The fiscal impact of the Bill is unknown.

Sources

Department of Revenue
Iowa Association of School Boards
Iowa League of Cities

The estimate held steady

$700,000 March 11, 2024
→
$700,000 April 19, 2024 · final

⁵

Final Fiscal Note — Educational Requirements, Waiver · April 19, 2024 · $700,000
Educational Requirements, Waiver · March 11, 2024 · $700,000

Reading a fiscal note⁶

Iowa Code it changes

Amends§298.4

How the Code works⁷

Lobbying

6 for · 0 against · 2 undecided · Who →

Family tree

Study bill

HSB 728Renumbered

90th General Assembly

HF 2653Became lawfrom HSB 728

Notes

The summary is written by an AI model from the official explanation. It can miss details; the explanation and the bill are what count. ↩
Written by an AI model from the official explanation and fiscal note only, for bills that passed a chamber, drew heavy lobbying or carry a large cost. It doesn’t weigh whether the bill is a good idea. ↩
The explanation is printed with the bill as introduced and written by the Legislative Services Agency, the Legislature’s nonpartisan staff. Amendments adopted later aren’t reflected in it. ↩
Written by an AI model from the newest fiscal note. It can miss details; the note itself is what counts. ↩
Each figure is the largest dollar amount in that version’s summary. ↩
Fiscal notes are nonpartisan cost estimates from the Legislative Services Agency’s Fiscal Services Division. The newest is listed first. ↩
Code sections are read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. ↩